Would like to get maximum rental income, but not sure of method to calculate. The property is rural, has over 5 acres and large house with park like setting. Thank you.
2006-11-05 07:13:26 · 10 answers · asked by Autie 1 in Business & Finance ➔ Renting & Real Estate
Get a Comparative Market Analysis from a local realtor. They should be able to help you calculate the average rental per square foot in your area. Many landlords base rent on the amount of their mortgage plus additional for maintenance. Good luck.
2006-11-05 07:26:02 · answer #1 · answered by psi2006 4 · 0⤊ 0⤋
Find out what similar houses in the area are renting for. Also, make sure you have a positive cash flow and put some money from the income into a slush fund to pay for any repairs which might come up. You should also try to get a feeling from the prospective renter as to whether they will respect and care for the home while they are living there.
2006-11-05 15:18:52 · answer #2 · answered by Who Am I 4 · 0⤊ 0⤋
I manage my own rentals and other peoples rentals. The way I determine rent is to look at other leased out properties and compare size, bedrooms and baths and amenities.
It's absurb to base your rent on your mortgage payment or other personal matters, such as property taxes or a percentage of your home value. Also, the person who commented on land is correct. It does add a little value because it distances your neighbors and allows the renters use of the land, but since they do not own it, it's value is insignificant compared to the sale of the property.
Regards
2006-11-05 19:07:40 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You can calculate the intrinsic rental value of your house based on the assessed value of your property.
Think of it this way, how much would someone pay in mortgage every month if they would to buy your house? If they can pay this amount then they will probably buy instead of renting, so that will be the maximum rental income you will be able to charge.
2006-11-05 15:17:07 · answer #4 · answered by Vincent C 2 · 1⤊ 0⤋
See what similar properties in your area are renting for. As a rule of thumb, monthly rent should be at least 1% of the value of the property, but if a lot of the value is acreage, that might not hold.
2006-11-05 18:39:21 · answer #5 · answered by Judy 7 · 0⤊ 0⤋
A property is usually worth 1% of its market value per month. But that can vary depending on surrounding values and rental offers.
2006-11-05 15:17:53 · answer #6 · answered by Anonymous · 0⤊ 0⤋
If possible you would want to speak with a landlord in your neighborhood. If that is not possible you should consult an agent. They will look for other homes that they have rented to give you a balll park figure. If that does not work out then you should look in your local paper for rentals.
2006-11-05 17:19:34 · answer #7 · answered by tianaramal 4 · 0⤊ 0⤋
Well, that's interesting. Renters are more looking at the home in itself. And of course they are looking at some land. But they can't do much with land I don't see renters wanting to pay a large rent payment. If you are not interested in the land for yourself maybe you might want to subdivide it with permission from the county or township and sell the lots to a homebuilder/prospective owner.
2006-11-05 18:43:44 · answer #8 · answered by Melissa 2 · 0⤊ 0⤋
Look in your local newspapers for what rent is going for in your neighborhood, and set your value at that, just be sure that it is more than your mortgage payment, and consider in property taxes, upkeep, damages, insurance, and yard maintenance, and utilities.
2006-11-05 15:17:52 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Well, you should set it high enough to keep deadbeats out!
Depends on the number of bedrooms, the going rate in your area, what utilities are included, etc.
I would look at want ads in your paper, and decide from that.
2006-11-05 15:21:46 · answer #10 · answered by Anonymous · 0⤊ 0⤋